The government of Eduland is planning to impose a tariff on the import of sports bikes. How is this policy likely to affect the domestic market for sports bikes in Eduland?

What will be an ideal response?

If the government of Eduland imposes a tariff on the import of sports bikes, the price of imported sports bikes in Eduland will increase. As a result, the demand for domestically manufactured sports bikes will increase. Thus, the domestic market for sports bikes will become stronger.

Economics

You might also like to view...

Myron worked at a factory where he earned $20,000 per year. He quit his job and opened a bumper sticker business. After one year, his business earned $60,000 in sales revenue and he incurred $30,000 in direct business expenses. If he received no salary from the new business, what is his accounting profit?

a. $10,000 b. $20,000 c. $40,000 d. $30,000 e. $60,000

Economics

Whose An Essay on the Principle of Population argued that human living standards could only temporarily rise above subsistence?

A. Adam Smith. B. Thomas Malthus. C. John Maynard Keynes. D. Alfred Marshall.

Economics